Fletcher Building shares continue their slide, having shed a total $1.97 billion in market capitalisation during the past year.
With much of its fortunes linked to the rebuilding of Christchurch, as the main contractor, Fletcher's share woes might be reflective of other businesses' dilemmas as all await the reconstruction to fully get going.
A year ago Fletcher shares stood at $8.60, but by early-January they hit a year's low of $5.80, then retraced to $6.98, before sliding to $5.78 yesterday.
While its global diversification and multiple divisions have helped underpin performances in the past, that exposure to lacklustre data from New Zealand and Australia, and now the European debt crisis, might be working against it in the short term.
Auckland-based finance company Lock Finance, which has about 33% of its client base in Canterbury, said businesses there were "struggling with a cashflow crisis that threatens to cripple the region's efforts to rebuild", chief executive Simon Thompson said yesterday.
He said that between the time taken by EQC to approve work, and the policies of some major contractors, there were sometimes waits of six months before payment for completed work.
Businesses were having trouble balancing payments as they had cash going out in wages, materials and running costs, but could wait months for payment.
Craigs Investment Partners broker Peter McIntyre said much post-earthquake business interruption insurance would have been paid out by now, the cushion of those payments "now having worn off" for many companies.
"There's now a lot of pressure on businesses to may a key decision: on whether to stay or leave Christchurch," he said.
He noted anecdotal evidence of people and businesses having moved to Dunedin since the February 2011 earthquake, but delays to insurance claims, house revaluations and residential rebuilding meant it had been difficult for many to leave.
Fletcher has issued several downgrades in the past year, as expectations of Christchurch ramping up get pushed further out, and in February said it expected after-tax profit guidance to be down by between 5% and 14%, to between $310 million and $340 million.
Building consents in New Zealand, coming off historical lows, were up 10% for March, at $845 million, led by Auckland and Christchurch, while Fletcher is expected to increase work in Australia with residential building up by 7000 homes to 146,000 during the next two years.
Mr McIntyre said while Fletcher was "exposed on several fronts" to economic problems offshore, ultimately, its global diversification would "hold it in good stead, in the longer term".
He had never seen such volatility in Fletcher shares, with such a variable trading range in recent weeks.
Mr Thompson said "traditional banks" lacked the people and expertise to properly assess business for loans without using property as a security and "hidden value" was not being recognised.
He cited a drainage contractor, who had EQC work, but was unable to use that as business finance equity, while another contractor with "years of work" ahead repairing 4000 driveways and 300 pools has such poor cashflow from late payments it was threatening viability of that business.
